Marketing Study Results: A Business Owner Must Read!

This is by far the most relevant study conclusion I've seen in a long time.

But if your looking for some serious information, check out 4 Keys to building customer loyalty.

Living Social: How to make your deal a Huge Success

So you've decided to give the "Daily Deal" trend a shot? Not a bad idea. Without a doubt Living Social (or Groupon) is a powerful way to bring new customers through your doors. The challenge, however, is to convert these new visitors into loyal returning customers.

The fact is, for most businesses, the deal itself is a loss (unless you're fortunate enough to get them to spend well above the value of the coupon on their first visit.) So it is critical to have a plan in place to get these "daily dealers" to return.

But before you devise a plan, you first need to know more about the Daily Deals Consumer.

Customer Profile

Edison Research performed a 2012 study on the behaviors and demographics of Americans that use "Daily Deal" services. The full presentation is below, but here are a few key findings:

• 49% are 25 - 44 years old
• 66% are women
• 35% income over $75k
• 65% have an iPhone or Android
• 85% are on Facebook
• 302 - the average number of Facebook Friends they have
• 35% use social media several times per day.

And here is the key observation discovered by Edison Research:

"The daily deals space encourages trial, but loyalty remains an opportunity" 

The Strategy

At first glance, the answer would appear as simple as having a loyalty punch card program. After all, "Daily Deals” user income figures and their higher propensity to join a premium service like AmazonPrime suggests that “Daily Deals” users are not price conscious, but value-seekers. In fact, when used in conjunction with a daily deal promotion, loyalty programs increase the likelihood of return business 70%.

But that's only part of the story...

These "value-seekers" are also tech-savvy and socially connected. They don't want a punch card to stuff in their wallet, they want apps. Did you know 64% of app users view brands with mobile apps more favorably?  So if you want to impress your new influx of customers have an app.

Not only does this feed into their tech-savvy profile, but you also have the ability to connect to their social network -- 302 people strong. That's because an app give you the ability to have customer "punches" posted to their Facebook wall. For example, "I just earned a free appetizer at Lou's Grill!"

Additionally, an app will allow you to send SMS text messages to further your marketing message. Imagine being able to send this text to hundreds of customers, "1/2 price drinks during Ravens/Steelers game Sunday at Lou's Grill." That's powerful marketing.

With all of this data, the answer is clear. By implementing a mobile rewards app, you will increase the probability that your tech-savvy value seekers will return. 

To learn more about the BmoreLoyal white-label app (which costs less then a cell phone bill) take the tour. And if you're currently running a Living Social or Groupon deal (or will be soon) we'll let you try it free for 30 days. You have nothing to lose and everything to gain.

Oh, and here's the Edison Research Report:

The Daily Deals Consumer 2012 from Edison Research

The Science of Mobile Rewards Programs

Loyalty rewards programs in the U.S. can be traced back to 1793, when a merchant began giving out tokens to shoppers that could be redeemed for items in his store. Since then we have seen programs evolve into complex marketing tools that consumers have come to expect -- with the average U.S. household belonging to 14.1 loyalty programs.

As we move into the mobile age, you can be certain that a successful loyalty program will be based on our handheld devices. According to eMarketer, nearly 116 million Americans use a smartphone at least monthly and by 2016 three in five consumers will own a smartphone.

If you're still not convinced that having a mobile loyalty program is an important part of your marketing strategy, perhaps this insightful infographic will help you see the light.

Spread the Word

Feel free to embed this graphic on your blog or website. We only ask that you copy the code below and paste it into your browser:

<code>

----------------------------------------

<a target="_blank" title="The Science of Mobile loyalty Programs [infographic by BmoreLoyal.com]" href=" http://bmoreloyal.blogspot.com/2012/07/the-science-of-mobile-rewards-programs.html"><img src="https://blogger.googleusercontent.com/img/b/R29vZ2xl/AVvXsEhcnrxJ2WtDtFJmqeURVGHnQ31xpX_eWCPpvnqHSBImdrdjrFClx1LKHERJy2pCb6Yz_BTCGbvTIHly2UQeVWRNJ8l2YLHge7h8KbLyIScxFNxERdfWgD7BGWb91AcClBCu-xXbRFOdPYsG/s1600/Science+of+Rewards+Infographic+1980.png" title="The Science of Mobile loyalty Programs [infographic by BmoreLoyal.com]" alt="The Science of Mobile loyalty Programs [infographic by BmoreLoyal.com]" border="0" /><br />

Infographic</a> by <a target="_blank" href="http://bmoreloyal.com/">BmoreLoyal.com</a>

----------------------------------------

</code>

4 Keys to building customer loyalty

Did you know you can increase revenues as much as 50% by increasing customer loyalty only 5%? It's true, according to loyalty guru Frederick Reichheld. So if you're not committed to building a loyal customer base, you're not committed to success.

But how do you do it? This slideshow covers the four keys to building customer loyalty.

How to build customer loyalty from LocalPunched

Should my business be on Pinterest?

Pinterest is officially the fastest growing stand-alone site of all time, surpassing 10 million users in 9 short months. It's without a doubt the hottest social network on the block, but should your business be on it?

First, let's explain what Pinterest is: A social media website that users post images and video instead of typed content. Users "pin" their interests (images or video) onto their virtual bulletin board. Their followers can see the pins and repin it onto their board, and/or like it to facebook. Users can also organize their pins into multiple boards, allowing you to categorize your pins anyway you see fit.

Currently, women are the largest participants, accounting for 87% of the entire user-base. One look at the site and you'll see why. It's visually stunning and many of the user boards I've seen are labeled categories like Wedding Plans, Decorating Ideas, Too Cute and Favorite Products.

So how do you know if you should be using Pinterest to promote your business? The first factor to consider is can your product or service be represented visually? It's easily done for a Furniture Store, but this proves to be a greater challenge for a Financial Advisor. Next you'll need to consider if you have the resources to create images worthy of sharing. You're going to want to post these images to your website, typically on a blog post. This is where the power of Pinterest comes in. When someone pins the image on your site, it includes a link back to you. So when people see that beautiful end table that Cindy pinned, they can click through to the website and buy one for themselves. Finally, you'll want to consider the demographics and engagement levels to determine if Pinterest fits your marketing strategy. Here's an infographic that can help.


Infographicby MDG Advertising